MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a leading global chemical producer, today announced its financial results for the third quarter 2016, said the company on its site.
The company reported a significant increase in its core profit (after tax and non-controlling interests (NCI) of Baht 2.85 billion in 3Q16, an increase of 57% year-on-year (YoY) on a reported basis. With one-off items, net profit was Baht 3.2 billion, an increase of 564%. This was driven by higher volumes in the feedstock business from recent acquisitions in the USA and Spain, a higher operating rate at 89%. Core EBITDA in 3Q16 was Baht 7.5 billion and the business continued to deliver double-digit Return on Capital Employed (ROCE).
Indorama Ventures strategic planning to navigate tough market conditions existing due to overcapacity in Asia has achieved a transformational shift across several parameters. Overall production has increased by 22%, driven mainly by improved integration wherein feedstock production has increased by 44%.
As a consequence of increased integration and strategic expansions, core EBITDA of the Company has grown across all segments and at THB 25.48 billion is up 16% on an LTM 3Q16 basis. The Fiber segment grew its core EBITDA sharply by 26% YoY due to strong demand while the PET segment grew 9% YoY. The feedstock segment grew 13% YoY as the production from the newly acquired assets in the USA and Spain helped build volumes.
Also on a trailing 12 months basis, core EPS after perpetual debenture interest has increased to THB 1.67, a significant increase of 59%.
LTM3Q16 has only two quarters impact of new facilities added in recent months in the US and Spain. As the Company’s latest acquisitions improve with IVL leverage and get fully integrated into the business, the Company stands to benefit further from the synergy gains in the coming years.
As MRC informed earlier, BP PLC is selling its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. (IVL.TH), for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC